‘A bill can be big or beautiful, not both’: Elon Musk mocks Donald Trump’s tax bill, sees federal deficit surging

Elon Musk has criticised “Big Beautiful Bill,” backed by President Donald Trump, warning it could increase the federal deficit and jeopardise DOGE's cost-cutting efforts.

In an interview with CBS, Musk said he was “disappointed” by the tax bill, which narrowly passed the House of Representatives last week. The bill is now awaiting a Senate vote.

“I think a bill can be big or it could be beautiful. But I don't know if it could be both,” Musk said in a preview clip shared on social media. He also said, "It increases the budget deficit and undermines the work that the DOGE team is doing.”

Growing 'rift' with Musk

Though Musk was a major donor to Trump’s 2024 reelection bid — with his Super PAC reportedly giving $200 million — his latest remarks suggest growing tensions between the two.

DOGE work “undermined”

The tech billionaire had been appointed to head the Department of Government Efficiency (DOGE) in January, tasked with reducing public spending. However, he stepped back from the role at the end of April after Tesla’s stock plummeted.

Cuts to welfare, EV incentives

The bill includes around $1 trillion in cuts to Medicaid, SNAP food stamps, and other assistance programs. Simultaneously, it slashes clean energy subsidies, including the $7,500 tax credit for electric vehicle buyers, and introduces a $250 annual fee for EV owners.

These provisions pose a direct threat to Tesla’s bottom line, adding to the financial pressure on Musk’s flagship company.

Tesla's slump adds to Musk’s frustration

Tesla recently reported a 71% year-on-year plunge in first-quarter profits, down to $409 million. The company has also lost roughly 25% of its market value since Musk’s government appointment in January, raising investor concerns.

Deficit expected to rise by $2.3 trillion

Despite deep spending cuts, the non-partisan Congressional Budget Office (CBO) estimates the bill will still add approximately $2.3 trillion to the federal deficit over the next decade.